2025 Capital Loss Carryover Worksheet is wrong

[user17710141265]

Line 1 on the Capital Loss Carryover Worksheet is wrong.  The worksheet reports the amount as Form 1040 Line 11b minus Form 1040 Line 12e.  The calculation should be Form 1040 Line 11b minus Form 1040 Line 14.  

Hopefully, one of the TurboTax employee Experts can report this to TurboTax and get this fixed.  I do not know if this is transmitted to the IRS when efiling, but for some taxpayers, this results in an incorrect reduction of Capital Loss carryover by 3,000.

[KrisD15]

Are you really asking about the worksheet from tax year 2005 or do you mean 2025? 

Line 1 on the 2025 Capital Loss Carryover Worksheet is your income listed on your 2024 1040 line 15. 

Are you asking about this worksheet? 

[user17710141265]

Sorry, typo. 2025.  Yes, the capital loss carryover worksheet.  If go to IRS instructions, Line 1 of worksheet indicates 1040 line15, with the following clarification: “If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses.  

When you read 1040 Line 15, it says subtract line 14 from line 11b.

The Turbotax  worksheet is inputting an amount equal to Line 11b minus line 12e (NOT Line 14).  

This results in an incorrect calculation.

[DawnC]

The Capital Loss Carryover worksheet is only using Line 15 from tax return 2024.    Yes, Line 15 of the 2025 tax return says subtract line 14 from 11b, but that has nothing to do with the 2024 tax return.   When you are entering the amounts for a capital loss carryover, you enter the actual amount from LINE 15 from your 2024 tax return.   On the 2024 tax return, line 15 says subtract line 14 from 11 - because there was no 11b on the 2024 tax return.  

You enter the amount from last year's return, so you can edit it if you need to.   Instead of using parenthesis, put a negative sign (-) in front if the number is negative.  

How do I enter my capital loss carryover?

[VolvoGirl]

Here’s some things to know about Capital Loss Carryovers……

Schedule D doesn't actually show the carryover amount to next year. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2.  Line 16 will be your total loss and line 21 should be a max loss of 3,000.  The difference between line 16 and 21 is the carryover loss for next year.

And if you have a negative AGI or negative taxable income it will show up on 1040  BUT it won't reduce the carryover to the next year.

There is also a Carryover Worksheet. There is a Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

[user17710141265]

Never mind.  I am talking about the 2025 WORKSHEET LINE 1, which does relate to the amounts reported on the 2025 tax return.  I input an extreme example, so 1040 Line 15 was a negative number in excess of 3,000 taxable loss (ie, negative 4,000, caused by the senior deduction reported on line 13b).  Line 1 of worksheet reported a positive number which equalled line 11b - line 12e (standard deduction only), not line 11b- line 14 (which is the sum of standard deduction and amount reported on line 13b).  I am talking about the capital loss carryover worksheet that calculates capital loss carryover FROM 2025 TO 2026, not 2024 to 2025.

[user17710141265]

My understanding = Actually, a negative taxable income can impact capital loss carryover.  For example, if taxable income is a loss in excess of 3000, and there is a capital loss reported on the 1040 of the 3000 limit  (due to carryover or the current year transactions), the taxpayer did not get a tax benefit from any of the reported 3000 capital loss (ie, negative taxable income assuming no capital loss allowed).  Therefore, that 3000 is still allowed to be carried over into the next year.  That is one of the reasons for the logic of worksheet lines 1-3.